finance.ec.europa.eu EU Launches Initiative for Tokenization Standards in Finance
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- •The ETSG will draft standards for tokenized securities by early 2028.
- •Applications for the group close on November 27, 2026.
- •The initiative aims to reduce fragmentation in the financial ecosystem.
The European Central Bank (ECB), European Commission, and European Securities and Markets Authority (ESMA) announced the formation of the European Tokenisation Standards Group (ETSG) to draft standards for tokenized securities. Applications for the group are open until November 27, 2026, with work commencing in January 2027. The ETSG aims to create a framework that addresses the fragmentation in the financial ecosystem caused by tokenization and distributed ledger technology (DLT). The group will include industry stakeholders and will be chaired by industry participants, with EU institutions observing. The goal is to produce initial standards by early 2028 to facilitate the integration of tokenized assets into existing financial systems. This initiative is part of the Eurosystem's broader strategy to enhance Europe's tokenized financial markets.
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